OPENING CALLS:
| Class III Milk Futures: | Steady 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 7 Higher |
| Soybean Futures: | 8 to 15 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 5 to 8 Higher |
MILK:
The selling pressure on Class III milk futures Thursday appears to have subsided overnight. Traders may wait to see the direction of the spot market before picking a side. Milk production continues to remain strong and is expected to remain that way for a period of time despite high grain prices. There is a determination to produce as much milk as possible at current milk prices. The impact from higher feed prices has not been long enough to cause heavier culling to take place. There is always hope for a good crop year that will replenish feed supplies. Spring flush in much of the country may be near or at its peak.
CHEESE:
The action during spot cheese trading Thursday would suggest further pressure Friday. There were only offers remaining at the close of spot trading possibly indicating buyers have moved to the sidelines or will keep bids lower. Supply and demand seem to be balanced and the reason cheese prices have not moved much.
BUTTER:
Price is trending lower as the food service pipeline has been filled and retail demand has slowed. Strong exports continue to support price as well as keep supply from building too much. Cream supply is tighter with prices higher, but there is sufficient supply available for all manufacturing needs. Spot price is not expected to move much Friday with the potential of losing what was gained Thursday.
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